December 2020 saw the highest level of residential loan settlements on record at $64B. Broker market share of the loan settlements also increased to 59%. The record lending levels are attributed to;
- Low interest rates
- Higher levels of loan servicing for borrowers due to lower living expenses
- Increased competition in the houseing market and increasing prices across all capital and regional cities
- Refinancing cashback and rate offers, competition from lenders
The lending surge is good for property prices and consumers it has created some issues in the lending channels. Brokers are experiencing delays with loan applications with many lenders and refinance applications are taking months to process in many cases. Our recommendation for borrowers is to get your pre-approval in place prior to entering the buyers market and also see if you can get an upfront valuation performed on any property you are strongly considering purchasing.